Exter's Pyramid

IMG Auteur
Published : October 21st, 2019
323 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

"I thought of this upside down debt pyramid when I was at Citibank in the early ‘60s.  I first gave talks on it inside the bank, trying to influence the bank because I saw too much borrowing short term and lending long term.  It was just awful!  I kept on warning the bank, but was just brushed aside.

When Nixon closed the gold window I said, 'This is my chance to get out,' so I took it. [laughing]  It was a great move on my part because I could buy gold and gold mining shares when gold was F$50 an ounce or less.  Now Citibank is on the problem list because it has so many bad assets."

John Exter, 1991, Simplex Munditis

The evolution of Exter's Pyramid over time.

The first image is purported to be the original which he used in the 1960's.  On an overhead projector perhaps, remember those?

It seems to have obtained circulation in newsletter writers, investment types, especially those with an interest in gold.

It became much more widely circulated after Nixon closed the gold window on August 15, 1971.

It gained some controversy in the debate between inflation and deflation.  The pundits thought it sound in describing an inflationary scenario.

But they balked at Exter's notion that during a deflation that the economy would work its way back down the pyramid as well.  They thought that this would require a return to barter and a systemic collapse.

I think it is moot because of the improbability of a deflationary collapse as compared to an inflationary one while a system is coherent, especially in a system of fiat money.

Granted if we are in a post apocalyptic world, then all bets are off.  In which case I would like to have lead, in the form of bullets, and medical supplies and water filters as much as gold.  I don't plan on it as a primary outcome though.  lol





<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Silver Cannot Be Demonetised No More
28 JanS W.
If you say that silver cannot be demonetised no more, the double negative means that it will be. ( I am a bit of a pedant)
PREPPING FOR A NUCLEAR WAR: 10 FOODS TO GROW TO HELP REDUCE RADIATI...
25 Jantsg
Why stay in an area that is vulnerable to WW3, go where it would be a waste of time for an enemy to drop a Nuclear weapon. Some small Central or S...
Storing and Hiding Your Gold at Home
19 JanS W.
What is Jeff's address? I will be around soon to rifle his joint.
The Genius of JPMorgan
19 JanS W.
Ted has been, rightly I guess, slamming JPM for ages. Surely he has made lots of dollars shorting silver as per JPM and raking in the $$$$$$
This is How You Can Dodge Facial Recognition Software
18 JanS W.1
I am thinking that poor old Mac is the most paranoid person on the planet. He seriously needs to start taking some meds. Any way i wish h...
The Genius of JPMorgan
17 JanArtboard
I fail to see why the Nations that are openly acquiring Gold reserves should not put equal amounts into Silver. Anyone with intellect can see that...
PREPPING FOR A NUCLEAR WAR: 10 FOODS TO GROW TO HELP REDUCE RADIATI...
16 JanS W.
Just about the greatest load of crap i have ever read. IMO why not move now to an area where there is very little likelihood of being any where...
Sedition in Real Time
14 JanGypsy
Good Grief James ! You have the complete Cast of Characters AND a map of The Maze. I'm impressed no end. I'm not surprised that you've shown us ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS